Published on April 28, 2014

According to recent industry scenario the majority of textile players are facing of money crunch due to delay in getting duty drawback from customs. Exporters are making their own efforts and are following up from last five months but still the claims are pending which has further affected their cash flows.

This industry generally operates between 3-5% net profit and delay in duty drawback has resulted in money crunch for the industry players. Chairman of The Cotton Textiles Export promotion Council (TEXPROCIL), exporters have been appealing the customs to release the duty drawback amount so that it will enable them to refund their other taxes and duties.

He added that generally duty drawbacks need to be released in two weeks after export as this industry mills operate at 50-75% of export on total turnover. He has announced that if the drawback will remain pending then it will be a serious issue and will be addressed at the earliest.

Recent news from Chinese market said that some changes made by Chinese government in their policies have affected Indian textile trade in China. Indian players believe that government should make some necessary changes to protect and stop declining export to Chinese market. Industry sources said that due to such issues this industry was not going from good face for the current week.